THE nation’s premiers are in open revolt over the Federal Government’s moves to cut $80 billion from health and education services over the next 10 years.

State leaders have demanded talks with Prime Minister Tony Abbott and an urgent COAG meeting to discuss their concerns.

Premier Will Hodgman joined leaders from other states yesterday to express his concern over the cuts, which are expected to take a significant chunk out of the state’s finances.

Mr Hodgman could not say how much of a hit his Government’s state budget would take, amid claims from his political opponents Tasmania could be $1.6 billion worse off over the next decade.

His comments were tempered by advice he received yesterday suggesting the state’s bottom line could be $460 million better off over the next four years than had been first anticipated after Tuesday’s Budget.

But Labor MHR for Franklin Julie Collins estimated the cost to the state budget would be $676 million in education funding and $1.083 billion in health money, by looking at losses in the forward estimates and projecting them for the next 10 years.

Mr Hodgman, right, was more reserved than his interstate counterparts in his response to the Budget.

“It is my job to respond in a sensible fashion to what are very significant challenges,” Mr Hodgman said yesterday.

“There is no doubt Tasmania is going to have to respond to what are very tough budgetary circumstances.

“My job now is to work constructively with the Federal Government to get the best outcome for the state.

“I am concerned about a shift in funding responsibilities.

“It is a tough Budget, there is no doubt about it. You can’t put it any other way than to say there are going to be significant challenges for our state. But there are significant gains for Tasmania as well.”

Earlier in the day Liberal Premiers and Treasurers from around the country were scathing of the Budget.

Queensland Premier Camp­bell Newman called for an emergency COAG meeting, saying the Abbott Government kept state leaders in the dark about Budget funding cuts.

NSW Premier Mike Baird labelled the Federal Budget a “kick in the guts” for people in his state. “They should not outsource their problems to us,” he said.

South Australian Premier Jay Weatherill said he was prepared to lead a national campaign against the cut.

“At the heart of this Budget is a deep dishonesty,” Mr Weatherill said.

Victorian Premier Denis Napthine endorsed an emergency COAG meeting but said there was no need for an increase in the GST rate.

Mr Abbott said his government was not going to be bound by the Budget booby traps laid by the Rudd and Gillard governments.

“They are state government-run public hospitals, they are state government-run public schools,” he said.

“What the people of Australia expect is grown-up adult governments in the states.”

There is an expectation leaders around the country will ramp up the pressure to raise the GST to 15 per cent to help pay for the Commonwealth shortfall.

But Mr Hodgman restated his position that he was against any move to change GST.

“I fiercely oppose any change to the GST and that has been our party’s state position for a long time and I was pleased when the Prime Minister recently said there will be no change,” he said.

State Opposition Leader Bryan Green said the Liberals had overpromised in the lead-up to the state election in March and would now be forced to raise taxes or sell assets to fix the Budget’s bottom line.

“This budget is less than 24-hours old,” State Growth Minister Matt Groom said yesterday.

“We’ve got to work through this carefully. We’ve got to be mature and sensible about this.

“But I will make this commitment — if there are adverse consequences for the state of Tasmania out of this budget, in particular in areas like health and education ... we will take it up to the federal government.”

Asked about Queensland premier Campbell Newman’s call for an urgent COAG meeting, Mr Groom said Tasmania would have more to say after analysing the budget.

He said it was too early to say whether the GST should be raised or broadened but welcomed the continuation of the allocation model.

Comments on this story

David Dobbin of Launceston Posted at 11:05 AM May 16, 2014

Pat # 25 - you say 'It's time politicians, if all colour, stopped believing that the electorate are as dupeable as what they think we are.' Unfortunately, the electorate IS dupeable..... you were clearly duped into believing Abbott's election promises, which he started breaking from day one, AND you argued endlessly how the Hodgman Libs wouldn't break promises unlike the Labor-Greens you despised so much, and yet they are at it from day 2, with the classic 6 year wait for any forestry action. How many more times are you going to allow yourself to be duped by the Liberal Party?

Mathew Munro of Hobart Posted at 9:05 AM May 16, 2014

Education is massively overfunded, but public health is massively underfunded.

Damien Jones of Lauderdale Posted at 11:29 PM May 15, 2014

Wow, Ken Wright or Rob B have been silent on creating jobs for Tasmania's unemployed after the budget. Now we can see they are only political tissue waister s concerned about their own believes. Any party that has a good ideas, Labour, Liberal or the Greens, should be supported and acted on.